Current and Future Strategic Fit of Oliveology in the Operational Environment

Contents

Executive Summary 3

Introduction 3

Methodology 4

Oliveology - Overview and Strategy 4

Business model 4

Competitive Strategy 5

Future Strategy 5

Oliveology's customers 5

Customer journey 6

Market Position 6

Order winners and Qualifiers 6

Analysing the 'Fit' 7

Current 'Fit' 7

Capacity 8

Supply Network 9

Process Technology 9

Development and Organization 10

Recommendations for critical points of matrix 11

Long term investment 11

Capacity 11

Supply chain 11

Medium term investment. Alternative to a new shop 12

Short term investment 13

Cost Analysis. Permanent shop vs. online shop 14

Permanent shop 14

Online shop 14

References 15

Appendixes 16

Appendices A1 - List of questions for interview shop manager 16

A2 - List of questions for interview customer 16

Appendices B - A summary of customer interview 17

Appendices C3 - List of Oliveology products 18

Executive Summary

This report has been prepared Ms. Marianna Kolokotroni, owner of Oliveology. And briefly describes strategic fit within a changing operational environment.

Oliveology sells high-price products, such as olives, olives oil, tea and honey at shop on Brought market and online shop. Shop shows Defenders type of strategy that interesting in unique products with high quality of products

The current market requirements for its products (expressed as performance objectives) are cost (high price), quality of products, speed in logistics network and, (in case of open new shop and having backup). Oliveology has met these market requirements through operations capabilities and decisions about capacity, supply network, process technology, and development and organization. Current fit shows a critical gap in capacity, supply network and process technology and also possible solution to achieve them.

Oliveology needs to address potential changes in market tastes and requirements and recommendations include focusing on sustainability including contracts with suppliers, and focus on 'uniqueness'. In order to complete the current and future market, Oliveology should consider finding secondary supplier that supply less amount of olives than the main supplier but more flexible in term of ordering cycle. Thus, the shop could reduce the chance of the product is in short supply. Another recommendation is to invest into online business rather than open a new shop. Cost analyze shows how much Oliveology could save if they will work more on improvement of website.

Introduction

This report has been prepared Ms. Marianna Kolokotroni, owner of Oliveology.

It will analyze Oliveology current and future market requirements and operations and capabilities. It will shoe current and future 'fit', including recommendations to address challenges in sustaining fit.

Oliveology has opened in Borough Market since June 2009 by a Peloponnesian lady named Marianna Kolokotroni. The shop located in Jubilee market and open on Thursday - Saturday from 11 - 17. Oliveology provides high quality products from Sparta. List of product can be found in Appendices D3. Oliveology focuses on organic and exclusive olive products that are using the traditional method and sustainable technique. Therefore, the products are different from others in term of quality and unique. Consequently, the price is higher as well , but Oliveology offers a variety of price ranges from £ 9 - 30.

Methodology

The report based on direct observation and interviews with the owner of the shop and their customers in Borough Market. Twenty customers were chosen randomly to do the interview. The list of questions can be found in Appendices A1 and A2. The interviews with owner give a clear operation process including current strength and weakness of shop. Moreover, direct observation during survey shows how employees respond to their customer and technique to motivate potential customer to make a purchasing decision.

For the customer interview, each customer was asked short questions in order to discover order winner and qualifier. There was 95% response (19 out of 20). The Summary of customer interview, see Appendices B. Personal information was not collected, the survey is completely anonymous.

Oliveology - Overview and Strategy

Business model

The Oliveology business model is a good example of co-productivity; even it's a young company with low income in the beginning. According to Fame (2010), the shop has slight sale in the first year while a setting up, branding and website costs are considerably higher. Since 2009, the company has created a stable supply chain model from Sparta to the customers, due to the unique products from Greece. "We only work with independent, artisan farmers who produce truly high quality items using traditional and sustainable techniques. In this way, we can help preserve traditional methods and support independent local producers in Greece." (Oliveology, 2012). The philosophy of the company "is to share the highest quality products, bringing good health and promoting sustainable living through fair trading and organic farming. We believe strongly in the benefits of organic food both to individuals and to society as a whole." (Oliveology, 2012) Nevertheless, the shop continually grows up about 10% in the following years. (Marianna, 2012)

Competitive